Investment Rating - The report maintains a "Positive" outlook for the defense and military industry [5] Core Viewpoints - The export of Chinese high-end military equipment is expected to accelerate, with military trade likely to see new growth [10][11] - The 2025 Changchun Airshow showcases China's expanding influence in military equipment [12][13] - The current market conditions indicate a continued positive outlook for the military industry [14] Summary by Sections Investment Recommendations and Targets - Key investment targets include: - Military Electronics: Aerospace Electric (002025, Buy), Zhonghang Optics (002179, Buy), and others [14] - New Quality and Domains: Haige Communication (002465, Buy), and others [14] - Engine Supply Chain: Western Superconducting (688122, Buy), and others [14] - Military Trade/Main Equipment: AVIC Shenyang Aircraft (600760, Unrated), and others [14] Industry Performance - The defense and military industry index (Shenwan) decreased by 0.97%, underperforming the CSI 300 index [16][18] - The overall military sector has stabilized recently, with a focus on domestic demand and military trade developments [10][14] Recent Developments - The signing of a defense agreement between Saudi Arabia and Pakistan enhances the export potential of Chinese military equipment [10][11] - The Changchun Airshow highlighted advanced military aircraft, including the J-20, indicating China's growing military capabilities [12][13]